The Store Development Wallet
(Order to Pay Solution)
In retail, hospitality and food & beverage industries working capital and cash management are key priorities. Leon Merkun, MD Working Capital Solutions at ING, explained the ‘Store Development Wallet’; an innovative total supply chain financing solution tailored for international project development.
With this unique financing solution, ING and Caliber.global are facilitating a sustainable and efficient supply chain that considers smaller suppliers. The solution leverages Caliber’s IT-system to automate a three-way-match between the purchase order, invoice and receipt.
The brand pays for all the project materials (Furniture, fixtures & Equipment - FF&E) , in one consolidated invoice and only when the project opens (e.g. store, restaurant, hotel). Next to a working capital advantage of up to 270 days, brands don’t have to administrate separate invoices from their FF&E suppliers.
Suppliers can decide when they want to get paid, entering their preference per invoice in the ING portal. The discount costs are shown to suppliers immediately, which are typically low as financing conditions using this approach are based on the financial strength of the ultimate buyer.
Ultra-Fast Supply Chain
Caliber's last Innovation day brought together professionals from various industries. This is where we heard from Karlijn Visser – head of operations of ‘The Seafood Bar’ - who explained how they manage their ultra-fast and ultra-fresh supply chain and how this would be a key aspect for the future success of many supply chains. Thanks to good relationships with their suppliers they can adjust supply levels within hours. Their ability to predict demand accurately comes from capturing and analyzing vast amounts of data. With product freshness being key to their success, they have no problem informing customers when the product is sold out. Together with an ability to vary the content of menu items, this means they can successfully deliver against their ‘no-waste’ philosophy.
Sensory concepts in Retail
Desiree Struijk from Senta also explained why a multi-sensory approach to attract customers is essential and how it can be used to influence the customers’ buying behavior. We learned there is too much focus on vision in-store designs while hearing, feeling and tasting/smelling are underestimated. Desiree also claims stores can be more successful if the differences in shopping behavior between men and women are considered more.
It is important for retailers with brick and mortar stores to protect the ‘DNA’ of their brand without creating identical shops everywhere. 80% of a store should express the core values of the brand while 20% of the store-experience should be changed regularly to ‘reward’ customers for returning to the store.
The last trend Desiree discussed is ‘blurring’. This is easiest to do when you have a very strong brand DNA. The concept of blurring can apply to many aspect like the senses, the design or for instance the supply chain. Making combinations with other brands or offerings that are mutually beneficial is an interesting trend that offers retailers many opportunities for growth.